This paper examines the impact of governance on tourism development in the Balearic Islands of Spain. The government of the Balearic Islands has implemented policies aimed at promoting sustainable tourism in the region, such as the reduction in the number of beds available in tourist accommodation and the reduction in the use of single-use plastics. The investment in infrastructure, such as new airports and improvements to existing roads, has made it easier for tourists to access different parts of the islands, thereby increasing the number of tourists visiting the region and creating new tourism products. The private sector has also played a significant role in the development of tourism in the Balearic Islands through heavy investment in high-quality tourism infrastructure, including hotels and restaurants. However, the increase in the number of tourists visiting the region has put pressure on the environment, leading to issues such as overcrowding, noise pollution, and environmental degradation. This has also led to the gentrification of some areas of the islands, causing the displacement of some local communities. Therefore, it is important for the government and the private sector to work together to ensure that the tourism industry in the region is sustainable and benefits both the environment and the local communities. This paper provides insights into the positive impact of governance on tourism development in the Balearic Islands and the challenges that arise from tourism development. It also highlights the need for a comprehensive approach to sustainable tourism development in the region that takes into account the interests of all stakeholders.